Thursday, July 30, 2009

Commodity Murabaha House, other news

Apologies for the lack of posting over the last month or so but I have been furiously finishing a report on Islamic finance in North America which will be released by Yasaar Media shortly. While it is being finalized, I would strongly suggest that you visit the Yasaar Media website and read the Islamic Investment Banking 2009 report (PDF) they released recently.

The Malaysian plans to encourage commodity murabaha through a trading house are progressing with a few details coming out about the Commodity Murabaha House (CMH). The CMH will offer trading in palm oil and be distinct from the palm oil futures market becasue it will only be spot trading. The CMH is beneficial by organizing the commodity murabaha participants thus likely reducing costs, but could attract similar controversy as the 'organized' tawarruq did specifically because all of the transactions were 'organized' by the bank offering financing and therefore was viewed to be blurring the lines betweeen a trade-based financing and interest-based financing.

Other News

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